DATE: 11/20/2024
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
2024-149
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
PURCHASE ORDER TO CITY ELECTRIC SUPPLY FOR THE PURCHASE OF 750-
KILOVOLT AMP PAD-MOUNTED TRANSFORMERS
EXECUTIVE SUMMARY:
This staff report asks the City Council to authorize a purchase order to City Electric Supply for the purchase of three 750-Kilovolt Amp Pad-Mounted Transformers. Two transformers will be used to replace current transformers that are beyond their useful life and one will serve as a contingency measure to expedite emergency replacement to ensure the least amount of impact to the electrical customers that are serviced by that equipment.
RECOMMENDED ACTION:
That the City Council:
a. Authorize the City Manager, or his designee, to issue a purchase order to City Electric Supply in the amount of $148,940.21 for the purchase of three (3) 750- Kilovolt Amp Pad Mounted Transformers.
b. Determine, under Corona Municipal Code Section 3.08.140 (E), that competitive bidding has been satisfied based upon reasons provided in the “Basis for determination of competitive bidding” section of this report. c. Authorize the City Manager, or his designee, to approve and execute any documents necessary to implement change orders up to the amount authorized by Corona Municipal Code Section 3.08.080 (I).
BACKGROUND & HISTORY:
The City of Corona’s Utilities Department is dedicated to ensuring safe and reliable electrical energy is provided to the ratepayers. Pad-Mounted Transformers are essential pieces of electrical equipment that step down the high-voltage electricity from power lines to a lower-voltage suitable for residential, commercial, and industrial use. They are typically installed in a steel enclosure mounted on a concrete pad and contain mineral oil.
Pad mounted transformers are engineered to prioritize safety, efficiency, and reliability, thereby mitigating the potential for electrical accidents and minimizing energy losses during power transmission. Transformer malfunction will result in power outages for the area it serves, disrupting daily routines and causing financial losses for businesses.
Damage or failed transformers pose a significant safety hazard, as they can ignite fires or inflict electric shocks. A 750-Kilovolt Amp (kVA) Transformer is typically employed to supply power to substantial commercial structures that demand substantial electrical capacity, such as those equipped with numerous heavy-duty motors, machinery, HVAC systems, and lighting fixtures.
Two pad-mounted transformer sites are currently providing electrical service to a significant business center and commercial district within the City of Corona. These sites are situated at the northeast intersection of North Joy Street and East Harrison Street.
These two transformers have visible signs of corrosion, oil leakage and are near the end of their operational life. An additional transformer will be purchased and stored in the warehouse as a contingency measure to expedite emergency replacements, given the extended lead times for ordering such equipment.
ANALYSIS:
The Utilities Department solicited bids on September 4, 2024, pursuant to the Corona Municipal Code Section 3.08.120, Non-public informal bidding procedure, to five local suppliers. Three bids were received by the bid due date of September 12, 2024.
Vendor ITEM LEAD
TIME
UNIT
COST
UNITS TOTAL COST
WITH 8.75%
TAX
City Electric
Supply
750-kVA PadMounted
Transformer
24-38
weeks
$45,652.17 3 $148,940.21
Walters
Wholesale
750-kVA PadMounted
Transformer
28 weeks
$48,600 3 $158,557.50
Wesco/Anixter 750-kVA PadMounted
Transformer
24-36
weeks
$61,925 3 $202,030.31
Cost summary:
BASIS FOR DETERMINATION OF COMPETITIVE BIDDING:
Staff believes that an exception to competitive bidding is warranted for this purchase pursuant to Corona Municipal Code (“CMC”) Section 3.08.140 (E), which states as follows:
“(E) Purpose of bidding is otherwise accomplished. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the city and its administrative operations to dispense with public bidding for non-public projects under this chapter.” Staff believe the purpose of bidding has been otherwise accomplished as staff solicited bids from multiple vendors. Due to the long lead times of the product and condition of the existing equipment, staff recommends issuance of a purchase order to City Electric Supply in the amount of $148,940.21 for the purchase of three 750-kVA Pad-Mounted Transformers.
FINANCIAL IMPACT:
Funding for the recommended action is available in the Transformer Lifecycle Replacements at Various Locations Capital Improvement Project No. UT-2022-02 within the Greenfield Electric Utility Fund 578.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15302 (c) of the Guidelines for the California Environmental Quality Action (CEQA), which states that “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination” and is therefore exempt from CEQA. This action involves repairs to existing infrastructure to maintain public health and safety and therefore is exempt from the requirements of CEQA, and no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
ATTACHMENT:
1. Exhibit 1 – City Electric Supply Quote
Bid Amount $148,940.21
10% Change Order Authority $14,894.02
Total $163,834.23